Alliances give Key the numbers to sell energy assets

New Zealand’s re-elected Prime Minister,
John Key
, has reached governing arrangements with the ACT and United Future parties, giving him allies to support a planned asset sale program over the next three years.

Mr Key agreed to offer United Future a ministerial position and will support some of the party’s policies in exchange for it backing laws required to enforce his National Party’s plans. He remains in talks with the Maori Party to also back his government.

Under New Zealand’s proportional voting system, Mr Key needs support from allies in Parliament even after his National Party won 48 per cent of the vote in the November 26 election, its best performance in 60 years.

ACT and United Future, which backed Mr Key in his first term, had signalled they would vote for the plan to sell as much as 49 per cent in four state-owned energy companies to help eliminate a budget deficit.

The agreement with United Future “gives the new National-led government confidence and supply support throughout this term’’, Mr Key said.

United Future leader Peter Dunne will be appointed Minister of Revenue outside of Mr Key’s cabinet.

ACT’s sole MP, John Banks, was a National minister in the 1990-99 ­government, holding the police and tourism portfolios. He was mayor of Auckand City for two terms before ­losing in the 2010 election.

National won 60 seats in the 121-seat Parliament and, with United Future and ACT’s vote, will be able to pass laws.